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Government released a report on the public consultation it carried out earlier this year regarding how the jurisdiction should tackle the issue of access to who really owns offshore entities registered in the Cayman Islands. The report revealed that over 80% of the people and organizations that responded do not believe Cayman needs a central register with public access and opted for the status quo, leaving the collection of information to the corporate service providers.

Most of those who took part in the consultation said a publicly accessible central registry would create a significant financial burden, violate privacy and information security and put the offshore industry at risk.

Participants raised concerns that the cost to clients of doing business in Cayman would lead many companies to shift to more cost-friendly jurisdictions without a public central register if CIG introduced such access before it becomes a global standard.

However, government said it will speed up the information exchange process by aiming to enact legislation that will require corporate service providers to produce beneficial ownership information to tax, regulatory and law enforcement authorities “within a target turnaround time of 24 hours in circumstances where such information is required.”

In addition, corporate service providers will be required to file legal ownership information of exempted companies annually with the General Registry and to designate a natural person locally who will be accountable to Cayman authorities for the availability and monitoring of ownership information.

Government further aims to enact legislation that will allow government authorities to wind up entities that do not comply with beneficial ownership requirements.

The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.